take a look at Hurco (HURC).
it's a Peter Lynch type of stock...boring industry and no analyst coverage, but has high growth, low valuation and low institutional ownership. actually there's 1 analyst covering the company, but he's from a generally unknown brokerage house.
the company makes computerized machinery equipment for metalworking. revenues growing at 20+% and P/E of 10x (industry is at 20x). they recently started selling their machinery into China. anyone familiar with the manufacturing sector in China will tell you that China's manufacturers are rapidly trying to upgrade their manufacturing processes so that they can shift from producing low end products to high end products.
what really caught my eye was that Caxton Associates is a top institutional holder, but institutional ownership is low at only 33% (another Peter Lynch favorite). you know how the mutual fund herding effect works and what happens when institutional sales starts calling their clients...
it's a Peter Lynch type of stock...boring industry and no analyst coverage, but has high growth, low valuation and low institutional ownership. actually there's 1 analyst covering the company, but he's from a generally unknown brokerage house.
the company makes computerized machinery equipment for metalworking. revenues growing at 20+% and P/E of 10x (industry is at 20x). they recently started selling their machinery into China. anyone familiar with the manufacturing sector in China will tell you that China's manufacturers are rapidly trying to upgrade their manufacturing processes so that they can shift from producing low end products to high end products.
what really caught my eye was that Caxton Associates is a top institutional holder, but institutional ownership is low at only 33% (another Peter Lynch favorite). you know how the mutual fund herding effect works and what happens when institutional sales starts calling their clients...
